[150 Pages Report] The global financial analytics market size is expected to grow from USD 6.9 billion in 2018 to USD 11.4 billion by 2023, at a Compound Annual Growth Rate (CAGR) of 10.7% during the forecast period. The demand for financial analytics is expected to grow significantly over the next 5 years owing to several factors, including need for reducing planning and budgeting cycles. The need for business varies with the total number of workforce and the nature of business. Companies at times need greater visibility into costs, resources, and performance, and requires improving accuracy, efficiency, controls, and auditability. Financial analytics software provides speed and agility through automated planning, budgeting, and forecasting, providing better insights into financial efficiency measures, operational Key Performance Indicators (KPIs), and product and customer profitability. These dynamic planning and budgeting platforms enable business users to adapt to changing budgeting and planning policies with minimal impact on the budgeting timelines.

The financial analytics market is lucrative for technology vendors, as the solution helps minimize the risk of non-compliance through regulatory adherence

Finance professionals seek solutions to drive performance across the enterprise. The cash forecasting and risk management capabilities in financial analytics software help companies to predict revenue, improve supply chain, analyze loss drivers, and detect fraud. These platforms are gaining traction across industries and among finance professionals, due to its compliance capabilities, ease of deployment, and the capability of integration with existing infrastructures.

Machine learning and AI capabilities to fuel the growth of the overall financial analytics market

Disruption of AI in finance is increasing exponentially, and organizations are adopting AI systems to speed up investment decisions. AI has the potential to revolutionize the industries with its regulatory compliance, equity predictions, and fraud and risk mitigation capabilities. Ability of AI to suggest portfolio solutions helps people meet their demands. Hence, the adoption of AI in the financial sector can result in an improved level of trust, accuracy, and resilience in the financial ecosystem, which is expected to be driving the overall growth of the market.

Cloud deployment model to grow at a higher CAGR during the forecast period

The demand for the cloud-based deployment model is expected to be increasing rapidly. These days, more applications are being deployed over the cloud, and enterprises have been making a shift from the traditional on-premises deployment model to the cloud-based deployment model. SMEs implement financial analytics platform using the cloud deployment model, as financial analytics enables them to focus on their core competencies rather than investing more capital on their IT infrastructure.

North America to account for the largest market size during the forecast period

The global financial analytics market by region covers 5 major geographic regions: North America, Asia Pacific (APAC), Europe, the Middle East and Africa (MEA), and Latin America. North America constitutes the highest market share, owing to the growing adoption of financial analytics as well as high penetration of financial analytics in multiple industry verticals, such as retail and ecommerce, BFSI, and government. The US and Canada are witnessing healthy adoption of advanced technologies, including financial analytics solutions.

Recent Developments:

In February 2019, Oracle Financial Services Global Business Unit collaborated with Blue Prism, a Robotic Process Automation (RPA) software provider to integrate Oracle's Financial Services Financial Crime and Compliance Management suite with Blue Prism's Digital Workforce. The partnership would provide companies with RPA capabilities along with the automation of critical compliance tasks. It would further help financial institutions in the investigation, resolution, and reporting of financial crimes and suspicious activities.

In February 2019, IBM Watson announced major collaborations and partnerships with several industry partners, including Garmin Health, Guardhat, Mitsufuji, and SmartCone, to improve employee safety in hazardous environments. The partnerships and collaborations would lead to new offerings that would leverage the benefits of IoT technology in association with IBMs existing Maximo, an enterprise asset management platform.

In January 2019, SAP announced its new S/4 Hana for financial products sub-ledger. The solution provides a central hub to manage data between operational and finance systems, streamlining accounting flows and supporting increased transparency and control. It also helps organizations in performing data analysis for financial steering.

In November 2018, TIBCO Software introduced TIBCO Spotfire X with an enhanced capability for showcasing real-time and historical data in the same environment. The software is supported by the companys groundbreaking A(X) Experience, which integrates multiple AI-powered interaction models that are agile and adapts to user preference and style. TIBCO Spotfire X combines 3 new authoring approaches; Natural Language Query (NLQ) powered search, AI-driven recommendations, and model-based processing, wrapped in a streamlined, modern interface.

Key questions addressed by the report:

What are the opportunities in the financial analytics market?

What is the competitive landscape in the market?

What are the regulations that will impact the market?

How are mergers and acquisitions evolving in the market?

What are the dynamics of the market?

To speak to our analyst for a discussion on the above findings, click Speak to Analyst

The study involved 4 major activities to estimate the current market size for the financial analytics market. An exhaustive secondary research was done to collect information on the market, the peer market, and the parent market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. Thereafter, the market breakdown and data triangulation procedures were used to estimate the market size of the segments and subsegments.

Secondary Research

In the secondary research process, various secondary sources, such as D&B Hoovers, Bloomberg Businessweek, and Factiva, have been referred to for identifying and collecting information for this study. These secondary sources included annual reports; press releases and investor presentations of companies; whitepapers, certified publications and articles by recognized authors; gold standard and silver standard websites; financial analytics technology Research and Development (R&D) organizations; regulatory bodies; and databases.

Primary Research

Various primary sources from both supply and demand sides of the financial analytics market ecosystem were interviewed to obtain qualitative and quantitative information for this study. The primary sources from the supply-side included industry experts, such as Chief Executive Officers (CEOs), Vice Presidents (VPs), marketing directors, technology and innovation directors, and related key executives from various vendors who provide the financial analytics software, associated service providers, and system integrators operating in the targeted regions. All possible parameters that affect the market covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Market Size Estimation

For making market estimates and forecasting the financial analytics market and other dependent submarkets, the top-down and bottom-up approaches were used. The bottom-up procedure was used to arrive at the overall market size of the global market using key companies revenues and their offerings in the market. The research methodology used to estimate the market size includes the following:

The key players in the market have been identified through extensive secondary research.

The market size, in terms of value, has been determined with the help of the primary and secondary research processes.

All percentage shares, splits, and breakups have been determined using secondary sources and verified through primary sources.

Data Triangulation

With data triangulation and validation through primary interviews, the exact value of the overall parent market size was determined and confirmed using this study. The overall market size was then used in the top-down procedure to estimate the size of other individual markets via percentage splits of the market segmentation.